BUTTERFAT PRICE FOR SEASON

Southland Times, Issue 25357, 8 May 1944, Page 4

BUTTERFAT PRICE FOR SEASON

Dairy Board Chairman’s

Statement

The effect that the Government’s recently announced proposals affecting the dairy industry will have upon the total payments to dairy, farmers for next season was made clear when the chairman of the Dairy Board, Mr W. E. Hale, addressed the middle ward conference of the board at Palmerston North last week. The payments to be made for the 1944-45 season should, he said, increase the average butter factory supplier’s payout to approximately 18.8 d per lb of butterfat. After outlining the history of the negotiations with the Government, Mr Hale said that every possible alternative to the present proposals was examined without finding any reasonable solution of the problem which did not create serious difficulties within the stabilization scheme, which the industry was already pledged to support. No doubt most of those present thought about these things in terms of butterfat, and he would summarize just what they meant. It was quite clear from some of the statements that had been made in the papers that there was a good deal of misunderstanding. To get the equivalent, in terms of butterfat, of payout for butterfat for the 1944-45 season; one had to take the following factors into consideration: The final payout for butter for 194243 equalled 16.569 d per lb butterfat. Add 1.036 d farm and factory cost allowance and the sum was 17.605 d per lb. butterfat. Add 1.21 d, the present wage cost allowance, and the total was 18.815 d per lb butterfat. Thus the payment to be made during the 1944-45 season should increase the average butter factory supplier’s total payout to the equivalent of about 18.8 d per lb of butterfat. ' In addition, the Governments share of the calf subsidy was equal to approximately .lid per lb butterfat, and the increased payment for pig meats was equal to approximately .27d per lb butterfat.